Hello everyone, today I want to talk about Litecoin, this is the seventh largest cryptocurrency on the market with constantly over 2 billions of daily trade and a market cap of over 3 billions, before starting with the analysis I would shot some numbers for better understand the currency we are going to check.

28% of the holders are in the money, it mean than only one quarter of LTC holders (address) are gain money at the current price, Litecoin is hold by large investor  for 48% of the total circulation, this mean that people that hold at least 0,1% of the total coin outstanding own slightly less than half circulating coin.

Large transaction (those over 100K Dollar) are in decline at 87 yesterday from the 221 of the day earlier and the 100  “whale transaction” that we see everyday.

Part of this information was taken by intotheblock.com (click here), in that website you can find a lot of info that could be useful for your trade or even just for some information you want to reach.

LTC long term view

Now that we just see some interesting numbers lets see the chart what tell us, in this chart that is the year to date period (from January 1) we can now clearly see a trading range that on our studio we did last month was not yet visible.

 This trading range is pretty wide as we have the lower band at 39 Dollar and the upper band at 50 Dollar, thanks to the secondary figure we draw on the chart (the up trendline) we can see that the valuation are sustained by a trend that is dominated by the bulls, the sell-off of few days ago wasn’t able to break this secondary trend that now is at a crucial moment.

In fact we can appreciate that we are very close to the upper band of the range, there are risks when we are at this position, the rejection risk is high, this may not be a catastrophic event by the way, even in the chance of a small drawdown we may expect to not broke the ascending trendline we just see.

Trading range figure are for definition not good for those who search a clear trend but can be useful for take a position waiting the breakout (in the upward is our  hope), than lets see some support if the general sentiment would get worse.

The first support is at 44,50 Dollar, this level would not brake the up trendline if it will be touch in case of a bearish pressure, the second support is well under the trendline at 41,50 Dollar and this would weakening the bulls position for sure.

The most important of all is the lower band of the trading range which is also a support, than we see that 40 Dollar is a very important barrier for preventing any further drawdown, the bulls may find the strength to win the battle at this price tag.

Lets think positive and see where are the next resistance if Litecoin can hold the ground, at this price the 50/51 Dollar is a strong barrier for any further continuation of the accumulation phase, we will need a lot of bullish momentum for pass this level but after that we may expect a “highway” till the 57 Dollar region that I think will be next stop.

Last resistance that we may wait for the medium tern at this point is the 63,50 Dollar, after this far resistance we will have the moon waiting for us.

LTC short term view

In the short term chart (1 month long chart) we can see that the sell-off of last day find a support at 44 Dollar that is very close to our view of the long term chart, for this level LTC was able to bounce back, we are not out of the danger of another minimum but if the valuation keep this trend we may put some distance from that value.

From the last time Litecoin touched the up trend  we can see that was just a regular trend with maximum and minimum that was ascending (look the circle), anyway the pressure of the up trendline that get close to the upper level of the trading range give too much stress to the price that find a minimum lower than the last one (the rectangle).

Last observation is this from the last sell-off of the beginning of may we see that the reaction is better now, on may we saw that the valuation take some time for return to the uptrend  that was before, now we take back on track very fast, this may be a positive signal for a strength trend and for eventually been able to breakout the trading range.

Thanks for reading, hope you enjoy the post and always do your own research before investing.

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